Developing Your Roadmap For Lean in Health Care - OPS, … · Developing Your Roadmap For Lean in...

© 2012 Operational Performance Solutions, Inc.

Developing Your Roadmap For Lean in Health Care

Presented by

Russ Scaffede

Former Vice President, Toyota

Chairman, Board of Advisors for OPS, Inc.

Operational Performance Solutions, Inc. 66 East Main Street, Suite 300K Westminster, Maryland 21157

www.OPSgroupinc.com

Lessons Learned Applying Toyota Production System (TPS) In Healthcare


Russ Scaffede Background

• General Motors • Toyota Motor Corp. • RWD Technologies • Donnelly Corporation • Tiara Yachts • Toyota Boshoku U.S.A. • Former Chairman, Shingo

Prize Board of Governors -Author -Speaker -Trainer -Consultant • Chairman, Board of Advisors,

OPS Inc.

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Two Expectations From Today’s Discussions

Lean or TPS is a system taken from a Toyota Perspective!

The failure of most implementations is caused by not integrating their Lean Philosophy with a Total Employee Involvement System!

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Toyota Chairman Fujio Cho

“Many good companies try to practice kaizen and use various TPS tools. But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner - not in spurts - in concrete way on the shop floor.”

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Leadership Commitment and Support Go See Ask Why Show Respect

- Culture Centered on Patient Care - Servant Leadership

(EPIC) - Employee Engagement -

Cascading Annual Planning Process

The Lean System of Patient Care

Quality “True North”

Principles Patient Centered

Quality at the Source

Standard Processes

Engaged Employees

Pursuit of Perfection

Supplier Partnerships

Objectives Defect Free

Without Waste

Just-in-Time

Continuous Flow

Continuous Improvement

Standard Work

5S/Visual Management Continuous Flow

Mistake Proofing

PDCA

Pull Systems

© 2012. Operational Performance Solutions, Inc.


A Lean Enterprise System Is:

First and foremost a system of continuously

eliminating waste in the Healthcare process

by developing a mutual trust between management and employees from a complete respect for humanity.

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A Key Principle Regarding Work (Lean And The Work Environment)

1. “With few exceptions most people are already doing as well as they can in the system or work setting in which they find themselves. Most cannot, or will not improve without changes in that work environment. Despite the tendency of so many managers and leaders to blame non-performance on some personality weakness of the individuals, the fact is people will respond when the setting is right”

“The Game of Work” Edwin G. Yager and Charles Coonradt

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Best Value = Total Patient Satisfaction /Total Customer Cost

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Only Three Processes That Matter

1. People Process

2. Innovation Process

3. Lean Process

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People Systems

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The integration of

People, Innovation and Lean Enterprise

must be viewed by ALL Team Members

as a “Growth Strategy”

and not just a cost reduction Strategy.

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Organization to Support Continuous Improvement

Team Member

Team Facilitator

Group Leader

Critical Missing Link: -Standardized Work -Control of Kanban Systems

-Job Instruction Training - Small team Participation

-Andon Response Leadership/Problem Solving

-Daily Preventative Maintenance -Team Member Assist for Problems

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© 2012 Operational Performance Solutions, Inc. 15

Cascading Annual

Planning


Innovation (Process and Patient Care)

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Innovation

There are two dimensions to the process of innovation:

(1) Quantum Advance/Breakthrough

Developments

• Big changes to the customer or business model

• Very large change to the product or process

• However, usually requires long development/

discovery cycles

–Electronic Medical Records

–Mortality Rate Reductions

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(2) Small incremental innovation in either product or process

• This is the heart of Toyota success

– With the integration of People and Lean

Enterprise these innovations are continuous

improvements with periodic Breakthrough hits

Sterile Room System Improvements

Capital Planning Utilization

Balance Of Room Utilization For Processing Procedures

Innovation

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Lean Enterprise

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Lean Enterprise

As with Innovation, there are two dimensions to the process of becoming Lean:

(1) Concentration on the elimination of waste, thus minimizing the Best

Value denominator

(2) Making many small incremental improvements in the

process and patient care, helping maximize the Best Value

numerator

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Why So Much Trouble Implementing Lean?

A Few Suggested Thoughts For Your

Development

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Why are Companies having so much trouble Mastering Lean and Innovation?

We Believe there are three primary reasons:

(1) A Total Organization commitment to a lean and innovation system

with a supporting education process

(3) Failure to fully integrate a total company people involvement

system into lean and innovation efforts

(2) Understanding the disciplined approach and action to install and

maintain a lean and innovation process

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(1) A Total Organization commitment to a lean and innovation

system with supporting education process

• Both require Executive level education and priority

commitment.

• Both require a commitment to establish a

focused and unique leader for each process

development.

• Both require the senior staff to develop the

company’s unique system.

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(2) Understanding the disciplined approach and action to install

and maintain a lean and innovation process

• The reason for the discipline in both systems is to establish clear

standards from which improvement can be made.

• This discipline is significant since it puts absolute mandates on using the tools

while at the same time allows for maximum team member flexibility to

change the process and in some cases the product.

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Methods to Achieve a Lean Healthcare System

Lean System (TPS)

Understanding

Understanding Your Current System

Develop Your Lean System

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• A Process For Achieving a Lean Enterprise/ Innovation System

Understand

and Belief

In An

integrated

Lean

Enterprise/

Innovation

System

Job

Security

Team

Member

Education

Support

Philosophies:

Human

Resources,

Sales,

Engineering,

Financial,

Executive

Team

Establish

The

Process

Set

Initial

Standards

For All

Operations

Develop

Annual

Policy

Deployment

To

Foster

Continuous

Improvement

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Listed next are my thoughts on the most applicable set of tools you would learn inside Toyota. These are the most applicable from many tools developed and I believe offer the best results.

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My Analysis Of Applicable To Lean Healthcare

Cascading Annual Planning Waste Identification and Elimination Value Stream Analysis Process PDCA/A3 Problem Solving (Root Cause Analysis) Standardized Work (not to be confused with SOP’s) 5S/Visual Management One-Piece Flow (Continuous Flow/Just-in-Time (JIT)) Waste Walk/Spaghetti Diagram Quality Assurance/Mistake Proofing Quick Changeover Pull Systems/Kanban

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Closing Thoughts

A Lean Enterprise can be a true competitive advantage

Lean is being attempted in most businesses today

Lean tools by themselves will yield some however limited improvement results

Developing a true lean enterprise can yield perpetual company success for the future

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Thank You Questions ?

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Thanks for listening. The next webinar is scheduled for July 18, 2012 with Dave Norton.

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Developing Your Roadmap For Lean in Health Care - OPS, … · Developing Your Roadmap For Lean in...

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